Hard Money Loans in Richfield
Suppose that you've encountered this really great bargain on a fix and flip property in a great location, and you are either an experienced real estate investor or a first-timer who really wants to try his hand at flipping. You may have heard that professional house flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around forty to fifty thousand dollars. And without a doubt, they are aided in a big way via their professional know-how, auction expertise and understanding of hard money loans. On the other hand, you are convinced that your superb rehab and renovation knowledge will help you do a quality job on this house — in addition, you already have lined up one of the premier building contractors in the area to work on this job.
But capital is usually a separate problem entirely. Should you opt for a traditional loan from the bank, you will wind up waiting around somewhere around 1-2 months until the loan is approved and the funds are available. With the home owners wanting a fast closing, that does not seem like a good idea to you in the slightest.
What's more, if you have an unfavorable credit rating or don't have a routine income, it can be tougher to be eligible for a a bank loan, with the more stringent loan requirements banks have issued in recent times. So will a shortage of financing stop you from sticking with your aspirations? Most certainly not, given that you always have the Richfield hard money loan alternative.
A hard money home loan in Richfield gives you what is possibly most sought after by real estate investors — a very fast closing time period of as few as fourteen days. What's more, the LTV value can reach up to 70% of the home value, as estimated by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank financing. But the term lengths for these loans are comparatively shorter, which makes the interest rate far less important. When it comes to short-term loans of one or two years or less, you should think of them just like you would other expenses for your project. And as soon as you've flipped the property or home, recovering this expense is comparable to recovering the expense for the bathroom updates you performed.
Besides, hard money mortgages are not difficult to qualify for, even when you posses a bad credit score. Richfield hard money lenders don't authorize a loan exclusively according to the applicant's credit score — rather they will look at the property, its location and value, and the home's capacity to pay back the financing without the assistance of the person. On top of that, if the borrower have proven experience in similar real estate ventures, can place down money for a down payment, and the price of comparative houses in the vicinity works to his benefit, he has a very good chance of being eligible to get a hard money real estate loan.
Finding a hard money lender in Richfield to help with expenses for your flipping business is not difficult, provided that the opportunity before you is promising and has a strong prospect for returns. Enter your info into the form on this page or get in touch with us via phone and let's talk about your property.
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